While the corn harvest of the 2019/2020 campaign in Argentina is progressing, where so far it reached 78.3% of the eligible area, producers are projecting the next cycle of the cereal.
The Rosario Stock Exchange (BCR), less than 3 months from the start of planting, projected a drop in the area of 10%. The producers’ decision is impacting the increase in costs, supplies and freight, but also the climatic and economic uncertainty. In addition, the entity’s specialists pointed out that currently the sale of supplies “is paralyzed”.
“The purchase of supplies was halted after the decisions made regarding the dollar,” they explain from Carlos Pellegrini, where until two months ago they hoped to maintain or raise the area. In Cañada de Gómez, they speak of “abrupt drop in corn”, they expect “a drop of 25%”. In the center and south of Santa Fe there are decisions to sow the same or up to 10% more, but they are the least and they are not enough to tip the balance favorably.
In addition, the report of the Rosario stock market, maintains that in the northeast of the province of Buenos Aires, among producers “there is no enthusiasm and they anticipate a more moderate decline, but double cultivation can take away hectares from corn.” To the northwest of Buenos Aires, as in Lincoln, the cost of freight in the margins greatly influences and they estimate a decrease of 10%. A few kilometers away in General Pinto they speak of drops of up to 30% and explain that there was a rise of between 15 and 20% in the price of fertilizers”.
And they added: “In Córdoba they want to keep the crop in rotations, sowing the same number of hectares as last year, but they also show a high level of uncertainty. They warn that the late and second maize area may fall. Although some state that the level of technology to be applied is unknown, those who are determined will cover the total requirements of the crop ”.
According to the report of the Rosario Stock Exchange, “corn was the crop that responded most to technology in the last 10 years in the core region”, if you compare the first five years, the 2010/11 to 2014/15 campaigns , with the second five-year period, 2015/2016 to the present 2019/20.
“The average yield was used to set aside the standard climatic variation, although it is not possible to separate the differences due to the anomalies that existed. The comparison shows that the jump in corn yield from one five-year period to the next was almost 20%, while soybeans registered growth of only 10%. Although the formation of yield depends on multiple variables, technological investment was a key factor in boosting corn yields and increasing production”, specialists from the entity in Rosario said.
Agustín Tejeda Rodríguez, President of the Maizar Congress, analyzed the role that cereal has had in the agro-industrial sector. The economist of the Buenos Aires Cereal Exchange said: “The corn chain has registered significant growth in recent years, gaining prominence in the agro-industrial sector. The planted area expanded 60% in just 4 campaigns. For the first time in the last 15 years, corn production exceeds soybean production, reaching 50 million tons. Currently, cultivation extends throughout the country, involving thousands of producers, with strong linkages with other production chains, and an important contribution to GDP, exports and the sustainability of our production systems”.
And he added: “Thanks to this significant increase in production, Argentina exported a record figure of 37.2 million tons for more than 6.6 billion dollars in the 2018/19 campaign, and regional poles for processing corn have been generated, like the ethanol industry in the province of Córdoba. In this way, thanks to a significant investment in research and development, and technological advances, the corn chain is, together with the sorghum chain, the one with the greatest possibilities to increase the production of healthy and quality food, energy and new goods and biobased services”.